Bitcoin has surged beyond $61,000 following significant outflows from U.S. spot Bitcoin ETFs. However, the start of October has been challenging for the crypto market, with Bitcoin dropping 7% from its earlier high of $66,000. Matthew Dixon, CEO of Evai, cautions that another dip might occur before the cryptocurrency stages a major recovery. He shared a chart resembling one from 2022, suggesting that a final downturn may be necessary before prices begin to rise again.
Final Drop Ahead for Bitcoin?
In a recent tweet, Dixon revisited his 2022 Bitcoin analysis, where he accurately forecasted a drop before a recovery. Comparing it to the current market, Dixon believes Bitcoin is following a smaller fractal pattern, echoing the previous situation. This indicates Bitcoin could experience one more drop before completing its correction phase. Dixon also noted increased volatility in Bitcoin’s price movements.
Despite the potential decline, Dixon remains hopeful about Bitcoin’s future, predicting a substantial upward trend following this correction.
Historical Data Suggests Bullish Recovery
Polymarket, a decentralized prediction platform, has shown mixed sentiment among bettors regarding Bitcoin’s price movement in October. While a spike to $70,000 seems unlikely, many believe Bitcoin will remain between $57,500 and $65,000.
However, historical data from CoinGlass reveals that Bitcoin often sees its largest gains later in the month. Although the first week of October tends to start slow, with only six green days in the first week since 2013, Bitcoin typically rebounds after the second week, with price increases of up to 16% frequently occurring after October 15.
Not a financial advice, also includes third party opinion.